Investors might want to bet on Quanex Building Products (NX) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Th ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-Q ________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-33913 QUANEX BUILDING PRODUCTS ...

Financial Data and Key Metrics Changes - The company reported net sales of $400 million for Q1 2025, a 67% increase from $239.2 million in Q1 2024, primarily driven by the Timon acquisition [16] - A net loss of $14.9 million or $0.32 per diluted share was reported for Q1 2025, compared to a net income of $6.2 million or $0.19 per diluted share in Q1 2024 [17] - Adjusted EBITDA for Q1 2025 was $38.5 million, nearly doubling from $19.3 million in the same period last year, with an adjusted EBITDA margin expansion of approximately 150 basis points year-over-year [19] Business Line Data and Key Metrics Changes - North American Fenestration segment net sales were $134.3 million, a decrease of 9.2% from $148 million in Q1 2024, with estimated volume decline of 8% [20] - European Fenestration segment generated revenue of $48.5 million, a 2% decrease from $49.4 million in Q1 2024, with adjusted EBITDA slightly declining to $9.9 million [21][22] - North American Cabinet Components segment reported net sales of $43.8 million, with a 3% volume decline and a 5% price increase [23] - Timon business reported net sales of $175.7 million for Q1 2025, with an adjusted EBITDA of $19 million, reflecting margin expansion due to cost synergies [25] Market Data and Key Metrics Changes - The company experienced a typical seasonal order cadence with a softer Q1 due to holidays and weather, alongside demand impacted by uncertainties regarding Fed interest rate movements and potential tariffs [10][12] - Customer conversations indicated a general sentiment of caution regarding new projects, influenced by macroeconomic uncertainties [11][70] Company Strategy and Development Direction - The company is focused on integrating Timon and achieving $30 million in run rate synergies by the end of year two, with plans to resegment the business into Hardware Solutions, Extruded Solutions, and Custom Solutions [7][8] - The operational focus will remain on safety culture, employee engagement, working capital improvements, and optimizing return on net assets to maximize cash flow generation [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year earnings guidance despite short-term market headwinds, citing the anticipated benefits of the Timon acquisition [14][42] - The company reaffirmed net sales guidance of approximately $1.84 to $1.86 billion and adjusted EBITDA guidance of $270 million to $280 million for fiscal 2025 [30] Other Important Information - Cash used for operating activities was $12.5 million for Q1 2025, compared to cash provided of $3.8 million in Q1 2024, impacted by the Timon acquisition [26] - The company has repaid $65 million of the $770 million borrowed for the Timon acquisition, with a leverage ratio of 2.2 times as of January 31, 2025 [27][28] Q&A Session Summary Question: Can you discuss the expected margin progress for the rest of the year? - Management indicated that gross margin should improve significantly for the rest of the year due to the PPA step-up related to the acquisition [35] Question: What factors contributed to the divergence in growth rates between the cabinets and fenestration businesses? - Management noted that weather had a significant impact, particularly in the window and door market, affecting demand [38] Question: How confident is the company in its full-year guidance? - Management expressed confidence in their projections, stating that they have a realistic view of the year and anticipate improvements in the back half [42] Question: Which segments are expected to drive improvement in the second half? - Management highlighted that the window and door segment is expected to see more seasonality, with the Timon business likely to contribute positively [50] Question: How does the company prioritize capital deployment between stock repurchase and debt repayment? - Management indicated that stock repurchase is currently a priority given market conditions, with ongoing evaluation of cash flow [55] Question: Which segment might be most impacted by tariffs? - Management suggested that the hardware business would likely be more directly impacted due to metal purchases, but they have protections in place [66] Question: What is the macro outlook based on customer conversations? - Management noted that customers are cautious due to uncertainties around tariffs and Fed actions, impacting consumer confidence [70]

EXHIBIT 99.1 Quanex Building Products Announces First Quarter 2025 Results and Reaffirms Full Year 2025 Guidance Margin Expansion Realized on Consolidated Basis Results Lifted by Contribution from Tyman Acquisition Realization of Cost Synergies from Tyman Acquisition Progressing Well $65 Million of Debt Repaid Since Closing Tyman Acquisition HOUSTON, March 10, 2025 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) ("Quanex" or the "Company") today announced its results for the three months ...

Margin Expansion Realized on Consolidated BasisResults Lifted by Contribution from Tyman AcquisitionRealization of Cost Synergies from Tyman Acquisition Progressing Well$65 Million of Debt Repaid Since Closing Tyman Acquisition HOUSTON, March 10, 2025 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended January 31, 2025. The Company reported the following selected financial results: Three Months Ended January ...

Quanex Building Products Corporation (NX) is slated to report first-quarter 2025 results on March 10, after market close.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 15.1% and 0.6%, respectively. On a year-over-year basis, revenues grew 66.6% but earnings per share (EPS) declined 35.8%. The sharp rise was largely due to the acquisition of Tyman, which closed on Aug. 1, 2024. Exclu ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Quanex Building Products (NX) reports results for the quarter ended January 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on M ...

Core Viewpoint - Quanex Building Products Corporation is set to release its first quarter 2025 results on March 10, 2025, after market close, followed by a conference call on March 11, 2025, to discuss the results [1][2]. Company Overview - Quanex is a global manufacturer with capabilities across various end markets, including window, door, solar, refrigeration, custom mixing, building access, and cabinetry [3]. - The company collaborates with leading OEMs to provide innovative solutions and plans to leverage its material science expertise and process engineering to expand into adjacent markets [3].

Core Viewpoint - Quanex Building Products Corporation will host an Investor and Analyst Day on February 6, 2025, at the New York Stock Exchange, aimed at engaging with investors and analysts [1][2]. Group 1: Event Details - The event will take place from 9:00 a.m. ET to approximately 11:00 a.m. ET [2]. - Attendees are required to RSVP by January 31, 2025, by contacting the Company's CFO, Scott Zuehlke [2]. - A live audio webcast and presentation content will be available on Quanex's website, with a replay posted after the event [2]. Group 2: Company Overview - Quanex is a global manufacturer with capabilities across various end markets, including window, door, solar, refrigeration, custom mixing, building access, and cabinetry [3]. - The Company collaborates with leading OEMs to provide innovative solutions and plans to leverage its material science expertise to expand into adjacent markets [3].

Company Operations and Facilities - As of October 31, 2024, the company operated 35 manufacturing facilities across 18 states in the U.S., seven in the U.K., three in Mexico, two in Italy, one in Germany, and one in Canada[17]. - As of October 31, 2024, the company had 7,068 employees globally, with employee turnover rates monitored monthly[41]. - The company operates at approximately 51% of machine capacity across its facilities in fiscal 2024, with variability due to product line, seasonality, labor shortages, and supply chain interruptions[108]. - The company has 13 additional facilities in North America for fenestration products, 2 in the U.K. for spacers, 10 for cabinet components, and 12 for fenestration and commercial access products[107]. Acquisitions and Strategic Growth - The company completed the acquisition of Tyman plc on August 1, 2024, enhancing its global reach and cross-selling opportunities[16]. - The company completed the acquisition of Tyman plc on August 1, 2024, for approximately $504.1 million, consisting of newly issued shares and cash[132]. - The company acquired LMI's polymer mixing and rubber compound production business for $91.3 million in cash on November 1, 2022[133]. - The company continues to evaluate business acquisitions to expand its fenestration and cabinet component footprint and enhance product offerings[129]. - The company is exploring potential acquisitions to enhance its product portfolio and market presence, with a focus on companies generating revenues of at least $EE million[209]. Financial Performance - Net sales for the fiscal year ended October 31, 2024, were $1,277,862,000, an increase of $147,279,000 or 13% compared to $1,130,583,000 in 2023[146]. - Operating income decreased by $55,875,000 or 50%, resulting in an operating income of $54,826,000 for the fiscal year ended October 31, 2024[146]. - Net income for the fiscal year ended October 31, 2024, was $33,059,000, a decrease of $49,442,000 or 60% compared to $82,501,000 in 2023[146]. - The NA Fenestration segment reported net sales of $650,058,000, a decrease of $17,424,000 or 3% compared to $667,482,000 in 2023[147]. - The EU Fenestration segment experienced a net sales decline of $20,062,000 or 8%, with total sales of $230,712,000 for the fiscal year ended October 31, 2024[151]. - The NA Cabinet Components segment reported net sales of $198,424,000, a decrease of $17,021,000 or 8% compared to $215,445,000 in 2023[154]. - Cash flows provided by operating activities decreased by $58,200 thousand to $88,812 thousand for the year ended October 31, 2024[167]. - Cash used for investing activities increased by $292,155 thousand to $420,594 thousand, primarily due to the acquisition of Tyman[168]. - Cash provided by financing activities was $385,156 thousand for the year ended October 31, 2024, compared to cash used in the previous year[169]. Market Trends and Projections - Window shipments in the residential remodeling and replacement market are expected to decrease by approximately 5.9% for the calendar year 2024, with a projected increase of 4.0% in 2025[20]. - New construction activity decreased by 2.5% and residential remodeling and replacement increased by 1.1% for the trailing twelve months ended September 30, 2024[20]. - The company reported a decrease in new construction activity by 5% in 2023 compared to 2022, with a forecasted increase of 6% in 2024[21]. - The overall decrease in window shipments for the trailing twelve months ended September 30, 2024, was 0.7%, with new construction activities decreasing by 2.5%[137]. - The U.K. vinyl business, Liniar, is positioned to benefit from the rising demand for affordable housing amid a growing immigrant population[138]. Operational Challenges and Risks - The company has identified a material weakness in internal control over financial reporting, which could lead to misstatements in financial statements if not remediated[65]. - The company faces significant pricing pressures from OEMs and large suppliers, which could negatively impact operating margins[69]. - Revenue may decline if customers vertically integrate, diversify suppliers, or shift manufacturing capacity to other regions[70]. - A few large customers significantly influence certain product lines, and losing any of them could adversely affect revenue and financial condition[71]. - Geopolitical tensions, particularly the conflicts in Ukraine and Gaza, could disrupt supply chains and negatively impact operating results and profitability[67]. - Climate change and extreme weather events could disrupt supply chains and decrease customer demand, negatively impacting revenues[91]. - The company purchases significant amounts of raw materials from outside sources, making it vulnerable to market fluctuations and supply chain disruptions[49]. - The company is subject to extensive laws and regulations regarding environmental compliance, which may increase operational costs in the future[51]. - Cybersecurity threats pose risks to the company's financial condition and operations, necessitating robust IT security practices[101]. Financial Management and Stability - The company has a revolving credit facility with operational restrictions and financial covenants that may limit capital access[74]. - The company plans to use excess cash to retire debt or meet working capital needs, indicating a focus on financial stability[164]. - The company has a $475 million Revolving Credit Facility and a $500 million Term A Facility, maturing on August 1, 2029[172]. - The weighted average interest rate of borrowings increased to 7.20% for the twelve-month period ended October 31, 2024, compared to 6.01% for the previous year[163]. - The company had $97,700 thousand in cash and cash equivalents and $245,500 thousand available under a revolving credit facility as of October 31, 2024[162]. Sustainability and Environmental Impact - The company is focused on sustainability by seeking ways to reduce its environmental impact and carbon footprint[24]. - The company has not incurred any material expenses related to environmental compliance in the past three fiscal years and does not expect significant costs in fiscal 2025[40]. - The company has a Vice President of Environmental, Health and Safety and maintains a committee to drive safety improvements as part of its operational strategy[38]. - The company has begun implementing additional programs for other raw materials to facilitate more accurate pricing and reduce exposure to changing material costs[206]. Miscellaneous Financial Information - Goodwill totaled $574.7 million at October 31, 2024, with potential impairment charges if future operating results differ significantly from estimates[52]. - The company recognized a loss of $0.3 million related to forward foreign exchange contracts during the year ended October 31, 2024[201]. - Total gross deferred tax assets as of October 31, 2024, were $60.3 million, with a valuation allowance of $4.4 million[188]. - Inventory reserves were approximately 1% of gross inventory for the year ended October 31, 2024, compared to 3% for the year ended October 31, 2023[189]. - A hypothetical 1.0% increase or decrease in interest rates could result in approximately $7.2 million of additional pre-tax charges or credits to operating results[199].